News from Around the World

China’s exports to the US are falling sharply as Trump escalates the trade war

China’s exports unexpectedly fell in August as shipments to the United States slowed sharply, pointing to further weakness in the world’s second-largest economy and underlining a pressing need for more stimulus as the Sino-U.S. trade war escalates.

China’s Potential New Trade Weapon: Corporate Social Credits

BEIJING—After five years, China is putting the finishing touches on a sweeping new system to punish and reward companies for their corporate behavior. But foreigners worry that, amid the continuing U.S.-China trade dispute, Beijing will use its new corporate “social credit” system as a weapon against international businesses.

Chinese corporate bonds set for another wave of defaults

Chinese private companies may face an even more difficult ride in the domestic bond market in 2019 as billions of renminbi in maturing issuance conspire with reduced risk appetite, threatening an even bigger wave of defaults. 

Chinese household debt hits record high, study shows

China’s household debt reached a record high last year, adding to worries the burden of debt services could weigh on long-term consumer spending and drag on growth in the world’s second-largest economy.

The country’s ratio of household debt to gross domestic product hit an all-time high of 49.1 per cent in 2017, marking an increase of nearly 20 per percentage points over the past five years, German insurer Allianz said in its latest global wealth report.

Christine Lagarde tapped as next president of Europe's central bank

Christine Lagarde has been tapped as the next president of the European Central Bank, an appointment that would make her the first woman to lead the powerful institution.

Conservatives Win Commanding Majority in U.K. Vote: ‘Brexit Will Happen’

LONDON — Prime Minister Boris Johnson and his Conservative Party won a commanding majority in the British Parliament

Dalio Says Something Like MMT Is Coming, Whether We Like It Or Not

Central banking as we know it is on the way out, and it’s “inevitable” that something like modern monetary theory will replace it, billionaire investor Ray Dalio said.

Deutsche Bank, Crosstown Rival Commerzbank End Deal Talks

Banking giant Deutsche Bank AG DB -1.41% and its crosstown rival Commerzbank AG CRZBY -3.15% Thursday ended merger talks, leaving in tatters the German government’s hope to shore up both banks and create a domestic banking powerhouse.

The CEOs and chairmen of both banks met Thursday morning in Frankfurt to seal the decision, a person familiar with the meeting said. Deutsche Bank had been leaning toward pulling out of negotiations for the past week, daunted by the costs and intricacies of combining the banks and difficulties convincing shareholders of the upside, people close to the discussions say.

Donald Trump and Xi Jinping Face Trade Showdown at G20 Summit

The G20 summit in Argentina — which starts on Friday in the Costa Salguero convention centre along the Rio de la Plata in Buenos Aires, Argentina — was always going to be a key moment on this year’s global political calendar. But its significance has grown sharply in recent weeks for a variety of reasons.

US president Donald Trump and Xi Jinping, the Chinese leader, have arranged to hash out their trade disputes on the sidelines of the meeting. Traditional US allies will be looking for their own reassurances from Mr Trump on both trade and tariffs.

Draghi Signals ‘Worse and Worse’ Outlook Warrants ECB Stimulus

President Mario Draghi set the stage for his European Central Bank to deliver another round of monetary stimulus as soon as September to combat the euro area’s severe economic slowdown.

While there are still signs of strength in the economy,“this outlook is getting worse and worse,” Draghi said in Frankfurt on Thursday after a meeting of the ECB’s Governing Council. “It’s getting worse and worse in manufacturing, especially, and it’s getting worse and worse in those countries where manufacturing is very important.”